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Akzo Nobel Exits India: Major Paint Companies Vie for Dulux Brand Acquisition

NSE: AKZOINDIA: Rs.3,800.00(+1.60%)

Akzo Nobel India is a leading player in India’s paint and coatings market, operating under the well-known Dulux brand. Established as part of the global Akzo Nobel N.V., headquartered in the Netherlands, the company has over 70 years of presence in India, where it has provided a wide range of decorative and industrial paints. Known for high-quality and innovative products, Akzo Nobel India has built a reputation for durability and color richness in its offerings, appealing to both consumer and industrial markets.

The paint sector in India is highly competitive, with few companies dominating the market due to the substantial capital investment required to establish paint manufacturing facilities. Akzo Nobel, a global leader in the industry, has been selling its products in India under the Dulux brand for over 70 years. However, the company is now considering an exit from the Indian market, citing intense competition, lower sales, and profitability challenges.

According to reports, several major players have shown interest in acquiring Akzo Nobel’s India operations. Asian Paints, the market leader with a 59% share, has already expressed interest, while JSW Paints, Aditya Birla Group (Grasim), and potentially Adani are also eyeing the acquisition, each reportedly willing to pay a premium.

Currently, the Indian paint market is led by Asian Paints (59% market share), followed by Berger Paints (18%), Kansai Nerolac (15%), and Akzo Nobel (7%). Despite its relatively smaller share, Akzo Nobel India has shown strong financial health, with reserves and a 5-year stock return of around 80%.

With Akzo Nobel standing as the fourth-largest player in India’s paint industry, its Q2 results announcement on November 7 is highly anticipated as potential buyers position themselves. The outcome could reshape the industry landscape depending on which bidder secures ownership.

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